BEIJING—A troubled Chinese real estate developer that is struggling with $310 billion in debt announced Tuesday it has been ordered to demolish a 39-building resort complex in a new blow to its finances. Evergrande Group gave no explanation, but news reports said the government of Danzhou, a city on the southern island province of Hainan, found it was improperly built and violated urban planning law. Evergrande’s struggle to comply with tighter official restrictions on use of borrowed money by China’s real estate industry have prompted fears of a possible default and financial crisis. Evergrande asked Monday for trading of its shares in Hong Kong to be suspended. Trading resumed following Tuesday’s announcement, gaining 7.6 percent. The company gave no indication of the possible loss from the demolition of the buildings on Ocean Flower Island. It said other buildings on the island weren’t affected by the order. Evergrande, the global real …
China Evergrande Ordered to Demolish 39-Building Resort
January 4, 2022
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